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Tax cut for new-car purchases in pipeline

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The Cabinet will today (August 25) consider a proposal to cut tax on purchases of new cars as it discusses measures to boost the auto industry amid the Covid-19 crisis.

The tax cut will be proposed by Industry Ministry Suriya Juangroongruangkit following his meeting on Monday with Mitsubishi Motors executives at the Mitsubishi factory in Laem Chabang, Rayong province. 
Mitsubishi has said it accelerate its planned Bt20-billion investment in Thailand. The company will launch its first plug-in electric car – the Mitsubishi Outlander PHEV – in late 2020 or early 2021 in Thailand. The model will be the first Mitsubishi e-vehicle produced outside Japan, Suriya said after the meeting.
The Laem Chabang plant is the largest Mitsubishi factory outside Japan, exporting autos to 120 countries.
Suriya said Mitsubishi has recently expanded its Thailand-based production along with fellow Japanese manufacturer Nissan, which has cut production in other countries.
Meanwhile, China’s leading automaker Great Wall Motors in February bought the Thai factory of General Motors, which had earlier pulled out Thailand. The Chinese company will start renovating the production line in October for the launch of auto production early next year, according to Suriya.
Carmakers have suffered plummeting sales this year, but are optimistic demand will rebound next year.
The Industry Ministry plans to boost production of electric vehicles to 30 per cent of total auto produced in 2030. The target for electric cars, motorcycles and buses is part of the strategy to cut levels of hazardous PM2.5 air pollution that have plagued Thailand. Vehicle engines run on fossil fuels have been blamed for the high levels of PM2.5.

Published : August 24, 2020

By : The Nation